THERE IS NO FREE MARKET IN ENERGY

Annotated List of Tax Credits
Prepared by Scott Sklar

Oil Royalties on Federal Lands (May 1998)
High Bill: “Royalty In-Kind” fee rather than “World Price” fee causes US Treasurey to lose $330 million per year and $1.65 billion over 5 years (2)

Ethanol Tax Credit (May 1998)
Highway Bill: 5.4 c4nts per gallon for ethanol through 2007 where the federal highway tax trust fund waiver results in $600 million per year
which equas $5.4 billion through 2007 (1)

$10 Billion in Subsidies that Fuel Global Warming
(November 1997) (6)
Mining Reclamation deduction $50 million/year
Percentage depletion on oil, Natural gas and coal $880 million/year
Capital Gains Treatment on Coal Royalties $19 million/year

Oil Imports, TaxPayer Subsidies and the Petroleum Industry
(May 1995) (5)
Independent Oil and Gas Producer Exemption from Alternative Minimum Tax (AMT) plus 58% of all federal subsidies ($21.1 billion directly promote
fossil fuels of which $7.7 billion are tax benefits

Federal Energy Subsidies (April 1993) (4)
1989 dollars per year (low estimates)
Tax Exempt Bonds for public power $1.14 billion
Tax Exclusion for electric coops $403 million
Percentage Depletion: Oil & Gas $390 million
Gas and Oil Exemption: passive loss restrictions $135 million

Federal Energy Subsidies (November 1992) (3)
Revenue Loss by Type: FY’92
Tax Deferrals: $100 million ($20 million for expensing Tertiary injectants and $80 million in working Interest in oil and gas properties)
Income Reducing Measures $870 million ($745 million in excess percentage over cost depletion exclusion and $125 million on inteest waiver on state and local bonds relating to energy)

Footnotes:

(1) Gingrich Halts Plan to Kill Ethanol Subsidy. The Washington Post. (Eric Panin) May 7, 1998. Page A4.

(2) How an Oil Industry favior Wound Upo in a Tornado bill. The Washington post. (Juliet Eilperin) May 2, 1998 Page A6.

(3) Federal Energy Subsidies: Direct and Indirect Interventions in Energy Markets. Energy Information Administration. Report # SR/EMEU/92-02.

(4) Federal Energy Subsidies: Energy, Environmental and Fiscal Impacts. Alliance to Save Energy. (Douglas Koplow) April `1993. 91 pages.

(5) Oil Imports, Taxpayer Subsidies and The petroleum Industry. Citizen Action (Ed Rothchild) May 1995. 20 pages.

(6) Cut $10 Billion in Subsidies that Fuel Global Warming to Fund Energy Alternatives and Economic Solutions. Friends of the Earth. November 1997. 12 pages.